Episode 350: 01-07-16
On this week’s show, Otto Travieso shares how CCIM helped him build his business, Don Weidenfeld of Magnum Energy Solutions and Michael D’Onofio of Engineered Tax Services discuss how to save money by going green, and Jim shares his thoughts on the 2016 real estate market.
CCIM South Florida Overview
Otto Travieso, CCIM – Principal Broker-Investor at Real Capital Partners, LLC – has been involved in real estate transactions for over 20 years. He is a CCIM (Certified Commercial Investment Member), considered one of the elite CRE certifications. He is experienced in both residential and commercial real estate financing, acquisitions, sales, and leasing.
Travieso has created a vast network from past client relationships that continues to produce new business. Having closed hundreds of transactions over the years, worth millions of dollars, Travieso possesses the experience necessary to assist in all aspects of commercial real estate.
Currently Travieso is handling the acquisition, stabilization and disposition of commercial assets for private equity groups and high net-worth families in South Florida.
We discuss how his CCIM helps him build his business. and we will get his thoughts on the South Florida real estate market.
Increase Property NOI – Go Green
Michael D’Onofrio is Managing Director at Engineered Tax Services, one of the only qualified professional engineering firms that have a staff comprised of its own licensed engineers, to include LEED Accredited Professionals, and tax experts ranging from CPAs to a former senior IRS executive.
We discuss how to modify your building to save money and pay for it through green energy tax credits.
Jim’s Outlook for 2016
Jim shares his thoughts on what he sees in the 2016 real estate marketplace.
Episode 350: 01-07-16 (To download, right-click and select “Save Link As”.)
Jim Fried: All right everybody. We are back. Happy new year. Welcome to 2016 on Fried On Business. We’ve got an awesome show. We’ve got my good friend Otto Travieso. We’re going to talk, he’s our CCIM voice. We’ve got Frank in the room, we’ve got auction.com in the room. Beyond that, we’ve got Frank’s little princess, what’s your name honey? Sophia. And she’s going to make it right just today. We’ve got an awesome show. We’re going to talk CCIM, we’re going to talk green energy with Engineered Tax Services and Magnum Energy Solutions and that’s right at the end of the show I’m going to talk all of my opinions on 2016. Make sure you stick around for that. I think it might be entertaining. AC, it’s yours. The stock market bombed thanks to China. Rock it.[commercial break]
Jim Fried: We are back and we’ve got a real crowd at studio today. We’ve got our CCIM voice Otto Travieso, we’ve got Frank Mello, the immediate past president of Frank Rodriguez Mello CCIM, we’ve got – I got to read the card – David Zippin from auction.com gracing us in the house and of course running the whole place, what’s your name miss? Sophia, Frank’s boss. Now we’re going to start with Otto. Otto, you’ve been involved with real estate transactions for over 20 years, you’ve followed the real estate game, you know what’s going on, you’ve been in the market here for a long time but really, Otto, what prompted you to get your CCIM?
Otto Travieso: First, Jim, let me thank you for having me. It’s a pleasure to be here. What prompted me to get the CCIM designation is that I had to make up for lost time and I felt that after 15 years in the mortgage industry I wanted to kind of get ahead of the curve and go directly into the commercial real estate game and at that point I felt the education was going to be important and CCIM could provide that.
Jim Fried: I’m sorry, I’m too busy photographing Anastasia, who? You know. I don’t care what Frank has to say. Anastasia is the big thing here today. Now, tell me a little bit about yourself and Real Capital Partners, you’re the lead guy over there, right?
Otto Travieso: Absolutely, yes. After transitioning from commercial, actually from residential lending and private equity lending into the commercial real estate arena I opened up Real Capital Partners and it was just the more commercial platform to go out and handle the second portion, the second half of my career.
Jim Fried: You decided to pursue your CCIM, you became a CCIM, what’s the impact been on your business since you’ve got the CCIM?
Otto Travieso: CCIM gives you a certain level of credibility. It shows other brokers in the arena, in the industry that you’re committed to a higher level of professionalism to a higher level of education and I think right now without that I consider the MBA of commercial real estate, without that I think definitely brokers are falling behind.
Jim Fried: So you’ve used it to learn some of the terminology, some of the ways that the deals are analyzed, I know you spent hours and hours and hundreds of hours in studying and taking those tests and everything but also then you’ve become part of the CCIM network and I’ve begun to learn how powerful that is as I’ve begun to start doing deals with people like John Leonardo. So it must be working for you too, doing deals with that.
Otto Travieso: Absolutely. It opens up many doors. The networking that we have consistently, networking among other CCIMs just opens up the channels for more business and once you pick up the phone and you call another CCIM, they’re ready, willing and able to go and it’s just more deals and more potential deals and opportunities to be ahead.
Jim Fried: It sounds to me like you’re an advocate that if somebody is in the real estate game, they need to get the CCIM and join the team here.
Otto Travieso: Absolutely. There’s no doubt.
Jim Fried: So now let’s talk a little bit about the real estate market. You’ve been here for 20+ years, you run your own team. What do you think is going on here in the South Florida market? Let’s just talk commercial because residential is a whole different game. How about office and shopping centers? What do you think about that?
Otto Travieso: That’s actually, my specialty is office retail and my take right now is that Miami is hot. It’s well documented, it’s international city but it’s just it’s getting hotter and hotter by the minute. I like Coconut Grove, Coconut Grove is extremely hot, probably less than 5% vacancy rate in office right now. This summer we sold a 40,000 square foot office building for just under $10 million and it was 100% occupied. It’s just crazy how tight that market is as well as the Coral Gables market has no new construction. Miami all over is hot. Even South Miami is coming along with some tremendous retail, repositioning with the new purchase of the Sunset Place and what’s going on at US 1 Corridor with redevelopment. It’s really hot. It’s crazy.
Jim Fried: We own a property down in Cutler Ridge and I’m amazed now for over 10 years and it just blows my mind about what’s been going on up and down US 1. The retail is amazing, the office is amazing, the office in that neighborhood and it’s just blowing up. It’s just going great. Now, as traffic becomes more of a problem in Miami, what do you think people are going to do and what’s the impact on commercial real estate that that’s going to have?
Otto Travieso: I think people are going to stay closer to where they work. They want to live close to their jobs, they want to use public transportation now, more mass transit, Ubers are big player now for South Florida. I myself take it anywhere and everywhere. Sometimes even to Brickell if I have to. So it’s impressive.
Jim Fried: Let’s bring Frank in here a little bit.
Frank Mello: Good afternoon everyone.
Jim Fried: Hey Frank. You’re a Little Havana specialist. What do you think about what Otto just said about the building up of neighborhoods?
Frank Mello: It’s absolutely the way and we have no way of regression on that. It’s the way of the future, of the present. Everyone wants the ease of access and city of Miami just passed that initiative on parking to reduce the requirements. So everything is leading up to ease of use and walkability and so forth.
Jim Fried: So Otto, then, what do you see coming in the next year or so in retail and office because what I’m seeing I agree with you guys that it’s filling in and it’s going to be infilled so the hot tenants are going to have a tough time finding the right locations. It sounds like an opportunity for everybody.
Otto Travieso: Absolutely. And what’s happening too is that it’s driving prices up so it’s a good time to sell if you’re an investor or seller. It’s definitely a very good time to sell because the market is just high barriers of entry everywhere and these tenants are also pushing up rents which is helping all the way around.
Jim Fried: What do you think is the submarket that’s least observed or perhaps is a good future opportunity? And you cannot say Little Havana because Frank pays me to make sure he’s the expert for Little Havana.
Otto Travieso: The opportunities that I see is whole Dade and that area, South Miami as well, just that whole, anything close to the metro rail station I think is exciting, really exciting because people are starting to use more of the mass transit. I think that’s absolutely where you want to be.
Jim Fried: Downtown, Dadeland, Tascano, the guy that did Tascano must have been a genius, I wonder who that was. Anyway, we’ve got Dadeland, so it sounds to me like you’re a big proponent of transportation and, Mike Faye called that the theory of donuts, getting people in just a focused location. What do you think is coming up for multifamily and, how much time do we have left, AC? Earth to AC? We’ve got a minute left, two minutes? Three minutes. I can talk about two markets in three minutes. Tell me a little bit then about what you see going on in the best market and where you think that’s going to be do you think anybody can build another apartment building and a site for that?
Otto Travieso: It’s extremely difficult to find the site and make sense of the numbers because our team has looked time and time again at sites and we’ve had sites where you could build significant number of units, maybe 300 units and at the end of the day with the construction costs you just can’t get it done. So that’s an interesting market, we’ve got to see how that plays out now in the next, actually this year, 2016. I’m sorry, construction just seems to have gone too far ahead of what you can actually make it as to make it a viable project. The costs of construction have really gone up.
Jim Fried: 100%. It’s all in, when you do the equation and when the different components just don’t add up, they don’t add up.
Frank Rodriguez: Kicking the market.
Jim Fried: It’s a little bit of a challenge, I can tell you that. Otto, maybe like one last thing. What’s next for you and Real Capital Partners in 2016?
Otto Travieso: I’m excited about 2016. I have two shopping centers that have been stabilizing for the last 18, 24 months. Those who go to market, there’re about 50,000 square feet each.
Jim Fried: Hold on, I want to do that off market. Now you’re telling everybody.
Otto Travieso: We can talk about it after the show definitely but we have our own little ways, so those are two shopping centers and we have a site now that one of my clients is hard on with in South Miami and that’s 180,000 square feet office space and retail space.
Jim Fried: To be built or existing?
Otto Travieso: To be built but they’re definitely ahead of the curve so I’m really excited.
Jim Fried: Is that the corner over by South Miami Hospital and by the Bikes?
Otto Travieso: Close to it.
Jim Fried: I love that location.
Otto Travieso: You might not be the one you’re thinking of but it’s right around there.
Jim Fried: I love that location. Otto, it sounds to me like you’re well-poised for 2016 that you offer some awesome services for people but there’s one thing that we neglected to mention: how do people find you? How do they get a hold of you?
Otto Travieso: They can call me or text me on my cell. The number is 305 785 7325.
Jim Fried: Do me a favor, repeat that and go slowly because occasionally we have people that root for The New York Jets that listen and we got to go slow for them.
Otto Travieso: Okay, that’s 305 785 7325.
Jim Fried: Otto, you’re the greatest. I want to thank you so much.
Otto Travieso: Thank you for having me.
Jim Fried: I can’t thank you enough. Frank, thank you for initiating this whole thing and bringing the guys from auction.com so they can see how we do it but of course you know what I want to thank you for doing, Frank.
Frank Rodriguez: What’s that?
Jim Fried: For bringing Anastasia. We’re going to be back after this. We’re going to talk going green, green energy. We’re going to talk tax segregation after this segment. And one more thing from you Otto?
Otto Travieso: Actually we did the cost segregation analysis on a building. I would definitely encourage building owners to do that. That’s a great tax benefit.
Jim Fried: Why don’t you stick with us? We’ll bring you on, you can to the guys after this. We’ll be back after this. AC, it is yours.[commercial break]
Jim Fried: We are back and we are going to talk green energy with Don Weidenfeld. He’s the Managing Director at Magnum Energy Solutions, and we’re going to talk with Mike, Mike, are you out there?
Michael D’Onofrio: I am, Jim. Can you hear me?
Jim Fried: All right. We’ve got Mike D’Onofrio. He is the Managing Director at Engineered Tax Services. And we’re going to talk about how Don can help you save money and go green with his products and how Mike and his team can help you save money on your taxes and other great things with their studies that they do. Guys, welcome back.
Michael D’Onofrio: Thank you very much. We appreciate that.
Don Weidenfeld: Thank you.
Jim Fried: It’s my pleasure. Don, we talk all the time about Magnum and Magnum can come in and retrofit a building and help them go green and bring money straight to the bottom line. We got a lot of real estate folks listening today, we got auction.com in the house, we got the CCIMs in the house. Let’s go for it. Tell me a little bit about how you can help people save money.
Don Weidenfeld: What Magnum does is we are a manufacturer of control systems and we use windows and doors sensors and occupancy sensors and which communicate bi-directionally to the thermostat. So it tells the HVAC system whether there’s an occupant in the space. When there’s no occupant it pushes your air conditioning controls upwards or if there’s an occupant it’ll push it downwards. And that translates into 25%-40% energy savings. We don’t do the HVAC alone, we also do lighting as well.
Jim Fried: That sounds great. It sounds like basically anybody that’s got a transient population in their building needs to be calling you guys. Mike, once they’ve called Don, how can ETS help them save even more money?
Michael D’Onofrio: Good question Jim. We work with Don’s firm quite closely and others like than across the country that are really innovative energy efficiency and other did a lot of work on properties and on all tax of commercial and some residential buildings are doing much tax of energy efficiency retrofit and improvement. What we do separately is as a licensed professional engineering firm based in Palm Beach Florida that have offices across the country is we look for the property owner and sometimes for the CPA, we work very closely with CPA firms to look at all federal state and local energy incentives, credits, rebates, specialty tax strategies that might be available to them given what types of improvements they may be doing. For an example, what a property owner might be looking to put enhancement to save money with their HVAC or lighting or windows or roofs or really anything in a building that might increase the energy efficiency of that building. Luckily, actually just a couple of weeks ago, Congress has passed another extension, CPAs call it extenders, for another two years of different tax of energy and specialty taxes tenants for the tax of improvement. They apply it to buildings as well as renovations or retrofits to existing older buildings and one of those is called 179-D which could be 50 cents over to a $1.80 per square foot of tax incentive. That’s for commercial buildings. Another one is 45-L, that’s for residential buildings. That’s about $2,000 tax credit for a unit. Other specialties, cost segregation types of services that we do just to help the property owners if they’re doing these improvements like Don has mentioned or others to help capture any other federal, local even down to the utility incentives that are out there because you definitely should take advantage of them. That’s why they’re out there. If it’s the first time that someone is hearing about, some of the incentives or tenants that are out there and they did something of this in their buildings last year or five years ago or even back to 2006. They can still capture the tax credits and incentives and use them on their next tax filing. So right now is a good time to be talking about this, you’re happy you’re going to have this on your program because people right now are planning, their 2015 tax filing for March of April or extending them to the summer.
Jim Fried: All right. Listen Mike, we’re having a tough time hearing you. Maybe you can try to dial back in and get a better signal. It’s tough for us to hear you. Don, we know that you guys work and you’ve got an electronic device that operates remotely in the properties. What is going on right now in Las Vegas at the consumer electronic show? What’s the impact that’s going to have on your routers?
Don Weidenfeld: We’re actually in the commercial business, the electronic show is more of a retail type outfit. And quite frankly, the awareness of our products is exploding exponentially. The internet of thing and technology has got to a point where the installations are seamless, the costs have come down to a point where it makes sense across the board and the energy savings translate down to the bottom line on your NOI, on your piece of real estate which tapping it out of the 6%-8% rate, you’re getting almost a 10 time payback on the invested dollars. And when you’ve got a company like Engineered Tax Services coming in with their tax credits it more or less pays for itself without even having any money outlay.
Jim Fried: I think that if you’re getting it paid for without any money outlay and saving money at the same time, that sounds to me like a win-win.
Don Weidenfeld: Yes, absolutely. It’s a win-win for everybody, especially the building owner. Quite frankly, whatever we save them is really translated into an enormous money maker on the value of the property. Generally speaking, most building made-in screws, they think about the energy savings and it translates into the bottom line of the income statement but they don’t really think about tapping it out then and turn adding the value so they can sell their property at a big multiple of that saving.
Jim Fried: Do we still have Mike?
Don Weidenfeld: So they can call you, Jim. You could sell the building for them.
Jim Fried: I could call or I could refi it, that’s for sure. Don, we lost Mike so Mike will hopefully dial back in if we can get the gerbil working in his cell phone again. Maybe that’s in now. What types of properties do you focus on? I know you’ve had the meetings with the big student housing guys at the national multi-housing council. So student housing, what other stuff?
Don Weidenfeld: We focus on all verticals of commercial real estate but our biggest verticals because the owner pays the electric bill and the tenant and what not pushes the air down, our biggest verticals are hotels and universities. And right behind that it’ll be office buildings that maintain significant vacancy or when the owner is paying the electric bill, we come in and reduce that cost.
Jim Fried: So that’d basically be somebody that’s on a gross lease rather than a triple network that’s getting passed through.
Don Weidenfeld: Correct.
Jim Fried: We’re going to at least try to give a little bit of love to the cost segregation guys and we’ll hopefully have Mike call back and get on. But if not, we’ll bring Otto back on and we’ll talk about how we work with cost seg.
Don Weidenfeld: I can give you a little bit on the cost segregation. Actually I was doing a presentation yesterday as one year associate and I was there with Julio who’s a CEO of Engineered Tax Services and quite frankly they buy distress A-rated office buildings and they want us to come in and do a cost segregation from Julio’s side, plus work on the 179-D energy credit and then we come in and put in our controls and we reduce the electric bills. They can turn these distress properties instantaneously into a profitable venture without even really any significant money outlay.
Jim Fried: I wish the guys from auction.com were listening to that. Think about the upgrade of ProForm as he’s going, I guess he’s going to need you to do that now, Otto, since you’re listening. We’re going to have to go to a break. Did Mike ever call back? Mike died. But we’ll talk more cost seg, we’ll bring Otto back on, maybe we’ll get a little bit more of CCIM on. We’ll be back after this. Take it away, AC.[commercial break]
Jim Fried: When he says ”I feel nice like sugar and spice” that’s my cue to do it some more. We are here with the real estate extravaganza. We got the CCIMs, auction.com, hard money lenders, Magnum Energy Solutions, Engineered Tax Services and ETS even brought in a pinch hitter. Hey, Cindy, are you out there? All right, we got Cindy, I think we got Mike back too. Mike, are you there?
Michael D’Onofrio: I’m here, can you hear me?
Jim Fried: We can hear you, we can hear Cindy and we know we got big Don.
Don Weidenfeld: Absolutely, Jim. We are back.
Jim Fried: All right, we are back and as I like to say, better than ever. Now, Cindy, you’re joining us so I want to welcome you back to the show. Cindy was on. She works with Mike. They are a team. And Cindy, we’ve been talking about cost seg and working with Don. What would you like to bring to the table today about cost seg and working with Don?
Cindy Blumenfeld: We’re working with Don and bringing much our life to our clients and you know what? We’ve been talking a lot of that tax suspension and ROI on the latest and greatest systems that are out there and there’s additional benefit when we talk about abandoning this position because whatever old equipment you’re throwing out, that has a value. So we’re here to capture that as a benefit as well.
Jim Fried: We just had Otto on the CCIM. He does a bunch of retail leasing. He was talking about redoing shopping centers. Otto, would this be something that makes sense for your client?
Otto Travieso: Absolutely.
Jim Fried: Did you turn on Otto’s mike? Okay. Otto, it does make sense for that, right?
Otto Travieso: Yes, absolutely.
Jim Fried: Don, Otto is doing a rehab of the shopping center. Can you add value?
Don Weidenfeld: 100%.
Jim Fried: How?
Don Weidenfeld: Not only, we can put in our wireless battery-less install, put it into the shopping center. Therefore, Otto can charge more rent in his spaces because the energy build is going to be 25%-40% or less in a competing space of the neighboring shopping center there is. So we can add value to him by increasing the resident leasing charge and then each space that are vacant that he’s spending energy bill, we can control that space through our systems.
Jim Fried: I got to cut that clip and print that and send it to every guy that I know that owns a shopping center. The guy, the CCIMs are nodding, the hard money lenders are just smiling. He wants to be a lender on that deal. Mike, you’re back. How do you and Cindy work together to bring value to your clients?
Michael D’Onofrio: We’re working as a team for a while what we typically do is try to be a great listener and figure out what their strategy is first, are they an individual property owner that might have a couple of investment properties or they’re a larger firm that has properties in South Florida or Central or outside of Florida or nationally. And then really help them to find the good solution. It’s not only for other energy tax providers that we work with like Don’s firm but what are all the other specialty tax energy and even insurance saving strategies that they can deploy because when they, they may have the great specialists that they work with in their CPA firm and we truly complement them. So that’s what Cindy and I do. First, be a great listener, figure out what their strategy is and how to complement that and then we bring in the other specialists. It really uncovers them opportunities that they haven’t thought of before. And that’s how commercial property owners, especially can maximize the return on investment on those properties. It’s finding other things to push.
Jim Fried: Then you work with big companies, small companies, operating companies, single owners, families, family offices? You work with them all to bring them value?
Michael D’Onofrio: Absolutely. And even other engineering energy firms like Don’s, other CPA firms and the individual small and large property owners. That’s why we’re a team. Cindy and I are a great team, and firm is a great team for all those types of entities small and very large.
Jim Fried: Sounds to me like you’re also a great team with Magnum. Don, how do you work with them? I know you’ve done a deal direct with Julio on their corporate headquarters.
Don Weidenfeld: That’s a little bit different than having a sit-down with a client but I am going to say that Julio was very excited to have our equipment into his building. And literally it’s saving in that 33%-35% range and he went and got, he does it on cost segregation plus if some of his 179-D credits and in addition to that when I had a meeting with him yesterday with a client of ours, he wanted to go ahead and do all the lighting to retrofit and change to the LEDs and what not that he can also get a credit on. And the LED lighting, they’re on the wattage, the LEDs are running about 12W-15W compared to a 60. So you’re saving 75% of your energy bill by switching over your lighting bill by switching over to the LED systems which we do and we control those through our occupancy sensors. In addition to that, this month we are rolling out with Phillips lighting with our controllers and nodes and everything.
Jim Fried: That sounds great. We get the lender in the back wondering how we can write this into the loan document so that he makes the loan and then they put it in there. Exactly, he wants to force them to do it, then the value really goes up and they cream the whole thing. That’s just awesome. Lenders are going to love this. I can’t wait to do the loans. We’ve only got three minutes left. Each of you guys has a minute. Tell me a little bit about how people can get a hold to you and one last take away for each. Don, let’s start with you. Let’s Cindy play cleanup today. Mike, you’ll be second. Don, start us off.
Don Weidenfeld: You can reach me at 561 702 9000. That is a 24-hour connection. Again, 561 702 9000. Or you can reach me at email@example.com, magnumenergysolutions.com.
Jim Fried: Now Mike. It’s up to you.
Michael D’Onofrio: Mike D’Onofrio, again a Managing Director at ETS, Engineered Tax Services in Downtown West Palm Beach is where our headquarters is. My direct number is 561 762 0044. Email is firstname.lastname@example.org.
Jim Fried: That was great. Cindy, you’re back in cleanup. How do people find you?
Cindy Blumenfeld: I’m here and I’m at 954 439 1671. And Jim, I really love the point that you brought up with that lender because we definitely assess the tax of income ratio greatly. I’d like to thank to anesthesiologist in the operating room, take that pain away from paying the IRS and be able to maximize your investment. So we appreciate this opportunity.
Jim Fried: It’s my absolute pleasure. We’re going to get you in front of everybody. Believe me, we’re all going to work together and we are going to do, yes, the lender is telling me he has to meet you, Cindy. He has to meet you. So we’re going to get everybody together on Fried On Business real estate cavalcade again. We’ll be right back after this. I’m going to talk about what I see coming down the pike in 2016. It’s going to be awesome. Back after this.[commercial break]
Jim Fried: We are back and we are going to go straight to the phone. We’ve got Paul While. He’s in here. He wants to tell us about the CCIM outlook conference we will be doing a live remote from. Paul, welcome back to the show, man.
Paul White: Thank you Jim. It’s a great program. I’m a true believer in cost segregation and I appreciate you having Frank, Otto and David there. David is one of our major sponsors of our outlook conference coming up on Wednesday, 20th January. So we’d like to invite everyone to come out on Wednesday, 20th January from 7:30 AM to noon at the Coral Gables Country Club for 2016 CCIM commercial real estate outlook conference.
Jim Fried: They’ll see all the CCIM stars that we interview, right?
Paul White: We will be there, we’ll have our red and gold pins on, easily identifiable and we’ll have quite a few guests there too. As a conference it draws about 300 people, professional real estate people, there’s going to be a lot of networking and learn what to expect to happen in 2016.
Jim Fried: Paul, how do they get more info on register? I’m going. I’m there, I’m interviewing everybody. David maybe not, but everybody else yes.
Paul White: It’s really easy to do. You go to the website miamidadeccim.com and you can register there in the matter of two or three clicks.
Jim Fried: That’s just awesome. Thanks for joining. We got to get you back. And maybe we’ll do one of these real estate cavalcades with everybody like you said it’s what the outlook conference is. Well, that’s what we’re going to do. Paul, thanks for calling in, man.
Paul White: Thank you Jim. And I’ll see you at the conference.
Jim Fried: For sure. I already registered. And here we go. So what do I see coming up for 2016 in the commercial real estate field? The number one thing is they’ll be continuing search for yield. Thanks for getting out the way, Dave, you’re the man. There’ll be continuing search for yield. Most people aren’t going to find it. So what they really need to do is they need to create deals the way I do. You got to go out and create deals in the coming months ahead. It’s not going to be easy so what do you got to do? You got to start changing your business plan. Now what worked before isn’t going to necessarily work today. I’ve been having meetings with the bunch of new family offices that have just started up that are looking to do real estate deals. They’re looking to do multifamily, they’re looking to do self storage, retail and office. Otto, will talk. The number one thing that you need to make sure that you’re going to do this year in the real estate business is pay it forward. Because what I do is I like to make sure that at least once or twice a year I’m able to help one of the kids that are graduating from these ubiquitous number of real estate programs get a real job and their heads up on their career. But that’s not enough. Once they’ve gotten their heads start, you’ve got to help them get the next job and you got to keep building the real estate industry, you got to pay it forward and this is the year, and Otto said it earlier today, if it’s time to sell you better push the button and sell now. But if you got great cash flow and a great location, I got a different idea, you got to put get on there right now, get now because if you don’t you may just miss the boat. I’m like most, I don’t think that prices are going to go through the roof. Why? Because the sovereign wealth funds, they just can’t take it. They can’t take an increase in cost to them because they won’t be able to pay off their bond. So what they are going to go up too high, there’s going to be sort of artificial international cap on that. Let’s run through them. AC, how much time I got left? Four minutes. Awesome. I can do it all in four minutes. Let’s talk about retail. Retail, I don’t talk about that. Retail is good but you got to be careful. Make sure you know the credit, check on who’s a slow payer or no pay because they aren’t going to be there much longer. Try to get things that are focused on internet. When we do deals, we like the Pet Supermarket and stuff like that, people can’t do the vet online yet. Office, I like office in the right location, not necessarily in the wrong location. I’m getting ready to get into an out of office in some places but in some of these donuts these little city states that are being created, I want my office right there. And if there isn’t enough by the apartments and the hotels, my goodness, I want to build. So office, there may be still a lot of room in office. Apartments, you just got to pick them if you like them and leave them if you don’t. Make sure you got the right operator and if you own something, put that long term government debt on it, put it away and let your kids deal with it in your upcoming family office. Condo, condo is evolving here in South Florida, it’s not really that big in other markets. Here in South Florida, I think condos are going to be okay, it’s just going to evolve. We’ll talk more about that with Carlos Rosso and Gill Dezer in the coming weeks. Interest rates, we talked about interest rates, they’ll go up but I think more so because people want to wide and spreads and because there’ll really be that much tolerance. I only have two minutes left. I did the whole world in two and half minutes. I’m the man. First, I want to say happy birthday to Alina Villasante of Peace Love World. She’s the inspiration that keeps my wife going and she’s a lovely lady and I love her products. I made shirt that says ”Gentlemen on it”, I wear it, people don’t believe it’s me but it is. Now, time to thank people like Frank, the CCIMs. Frank, you’re welcome. Without you, the show wouldn’t be possible. South Florida Business and Wealth Magazine, KIND Snacks, I want to thank UHealth, Warren Henry Automotive, The NFL Alumni Association, The Miami Marlins, Social Media 305, The Aztec Group, Lauren’s Kids, Bruce Turkel, The University of Florida Bergstorm Center for Real Estate Studies. Now I got to go to the supplemental list because I’ve got way too many sponsors. Who did I forget? EarlyShares, Xpresso Marketing, Magnum Energy Solutions and of course our friends Julio, Cindy and Mike and the rest of the team at Engineered Tax Services. Thank you of course to our listeners, those are the people that if it wasn’t for them, I’d have no show. Thanks for listening in 2016. Go to our Facebook page, like our show, tell your friends, join our community, give us feedback and comments, tell us who you want to hear from. The big finish is coming. You better stay tuned. It’s going to be fun. Follow me on Twitter @JimFried, tweet the show is Fried on Business, Facebook, my God, I’m just exploding on Facebook. I discovered Facebook ads, it costs $100 to generate every lead for my wife’s kidney transplant. We’re getting a boat load. Please, share my wife’s story on LinkedIn, Facebook, Youtube, I’ll be up on Youtube with this crazy thing I’m doing. The website, the hits just keep on coming. If you missed the show, it’ll be on that website www.friedonbusiness.com. I almost said something wrong. As soon as I can have my webmaster place it on the internet. We’re going to be next Thursday on 880 AM at 6:00. Why? Because I just love doing this. Remember, this is not a rehearsal, this is your life. The person that wants to do something finds a way, the other finds an excuse. Now go out there and make it happen. AC, back at you.